Plans for county’s taxi licence fees in to increase

Anthony Lewis, Local democracy reporter.

Plans for taxi licence fees in a county to increase for the first time in nine years will go out to consultation.

A review of fees and charges for hackney carriage and private hire taxis has been done in Merthyr Tydfil.

Full council on Wednesday, March 4, agreed to consult on proposals which for new drivers (three-year licence) would see fees increase from £272 to £312, driver renewal (three-year licence) fees increase from £230 to £290, vehicle fees go up from £154 to £217, and private hire operator fees (five-year licence) increase from £135 to £394. 

The main fees considered for review were vehicle licences, the three-year drivers’ licence, and the five-year operator licence which in comparison with neighbouring Welsh authorities has Merthyr Tydfil toward the lower end of the scale. 

The last review of licence fees was done in 2017 and since 2017, the council said it has not increased fees and has looked to support the licensed trade through challenges such as recovery from the Covid pandemic and the volatility in the fuel market. 

The review of current fees was carried out to cover reasonable costs of administration, enforcement, and compliance based on full cost recovery. 

There will be a full consultation and if no objection is received to the proposed fees, then the licence fee uplift for 2026-27 financial year will come into force on May 1, 2026. 

If objections are received, the matter will come back before the next appropriate full council meeting, so any such objections and modifications can be considered, and a new date for the introduction of the changes can be set. 

Based on current licences and projections there would be an increase in
total income of £13,545 per year relating to vehicle licences, an increase in
£14,520 total income over a three-year period relating to driver licences, and an increase of income of £7,770 over five years relating to private hire operator licences. 

Councillor Brent Carter, Labour leader of the council, said the proposal was not about profit as the law prevents that, but it’s about full cost recovery ensuring the service is sustainable and that public safety standards continue to be upheld. 

He said it was a “balanced and responsible” step that recognised both historic support the council has provided to the trade and the financial realities of running a statutory licensing service. 

Cllr Geraint Thomas, leader of the Independent group, said he hoped there could be some incremental rises, and he said he couldn’t support the proposals in their current format. 

Cllr Michelle Symonds, Independent, said as councillor for Bedlinog and Trelewis she represented communities that already struggle to access taxi provision, and they do not have the same transport resilience as urban areas. 

She said that for many residents, particularly older people, those with health needs, and families without access to a car, taxis are not a luxury but essential. 

Cllr Symonds said bringing forward taxi licensing fee increases without rural impact evidence, tariff modelling, and contingency planning risks placing further pressure on an already fragile service. 

“If operators withdraw from rural routes because they become commercially unviable, the impact will not be theoretical; it will be felt immediately by residents with limited alternatives. Consultation should follow evidence. Not preceding it,” she added. 

Councillor Claire Jones, Independent, said it would be interesting to see the results of the consultation but with the current amount she would be voting against.